Does buying 'Made in Africa' work?
The decade leading up to the recession saw increased development in the creative sector in Africa - namely, fashion and the arts.
Nigeria had its three different fashion weeks and weekends; Lagos Fashion Week, Arise Fashion Week and GT Bank's Fashion Weekend. South Africa had a similar story, with South Africa Fashion Week, Africa Fashion International Fashion Week, South African Menswear Fashion Week. Other hubs across the continent such as Accra, Nairobi, Dakar and Abidjan and Cairo had had a similar resurgence in fashion and textile space.
Promoting locally produced goods and services is a loosely structured form of economic nationalism, which aims to boost the economy through patriotism, policy, and if necessary, tariffs. President Trump's 'America First' policy is the more aggressive version across the Atlantic.
The earliest well documented application of this was the 'Buy British' campaign of the 1930's following the Great Depression. Subsequent 'Buy British' campaigns in the 1980's to boost agriculture and in 2015 to boost steel to stave off cheaper Chinese competitors were less effective.
'#BuyNaijaGrowTheNaira' started off as an online campaign by the Nigerian government to promote Nigerian made goods. The idea seemed reasonable(and doable); it was something all Nigerians could practically get involved in. This concept spread to other regions in the continent experiencing the impact of low commodity prices with #MadeInAfrica tags popping up across social media platforms, where the promotion of locally made goods, particularly in the creative, textile and manufacturing industries was promoted.
In theory, it made sense:
1.It was a strong response to counter cheap goods being dumped on the market.With the rising influence and trade with China, buying local would stave off cheaper, often inferior goods and textiles being dumped into the market, that would local manufacturers out.
With an increase in the number of locally made fashion and textile industries, there would be a greater need to employ individuals to meet the new demand. There could potentially result in better skilled pattern cutters, buyers and an overall improved fashion ecosystem.
Increasing the focus on locally made goods and textiles while also creating value in cultural preservation would help curb the erosion of customs, skills and craft in particular textile weaving.
The push for locally made goods would promote domestic businesses and prevent the dominance of foreign firms on domestic industries and thus increase living standards
5. Improve the current account:
At a macro level, buying African goods from the fashion, textile and the arts at large could increase the country's current account without impact to monetary policy such as devaluation of currency which affect countries such as South Africa, Egypt, Morocco, Algeria and Nigeria who are the biggest importer.
Being able to cater to not only local consumers but also international consumers would help diversify the export portfolio of many countries on the continent - some of which are heavily dependent on oil and commodity revenue. Reducing that dependence through export diversification could potentially ease the pressure of commodity price dependency.
One of the many brands making strides in this area of 'Made in Africa' is celebrated South African brand Maxhosa by Laduma who produces knitwear inspired by the South African Xhosa tribe's beadwork and patterns using South African mohair and wool.
His utilisation of traditional craft and expertise with advancements in technology has not only promoted awareness to the South African community but also kept the culture relevant. He manufactures solely in South Africa which has had a positive impact in the region through the creation of jobs and skill acquisition.
Recent endeavours by the Ethiopian government to promote Ethiopia as a production centre for fashion houses has been in part successful. on one side, it has created interest in the production capabilities - PVH which owns Calvin Klein and Tommy Hilfiger taking particular interest. As a fairly recent government initiative which focuses on very low labour costs compared to Bangladesh and India, the sustainability and long term impact of Ethiopia as a production powerhouse in the fashion and retail industry.
The other side of the coin
Conversely (feels like I am writing my A'Level English literature exam all over again), while this all looks good in theory, the textile industry in Africa (bar a few countries) has been largely ignored for the best part of the 20th century with little to no investment in countries below the Sahara, resulting in its decline. Supporting uncompetitive industries which have over time lost their comparative advantage and any perceived value (cultural or otherwise) may cost the country more than it is worth. Inefficient production.
In addition to this, with the gradual implementation of the Africa Continental Free Trade Agreement (AfCFTA), countries can have no bias on domestic industries. Having protectionist policies to elevate national interest in the retail industry whilst pursuing free trade policies seems double-minded and will certainly have retaliatory consequences as we have seen with China and the US.
Moving on from this, we are are challenged with the question:
What does 'Made in Africa' really mean?'
The world, we have been told, is a global village and utilising the benefits of this 'global village' to keep costs down has been a mainstay for retail businesses. Fast fashion brands such as H&M, Topshop and Zara are Swedish, British and Spanish brands who manufacture predominantly outside Europe - but doesn't make them any less European.
French-Moroccan designer Charaf Tajer and 2020 LVMH Prize semi-finalist, of Luxury brand Casablanca Paris's decision to design his creations in Paris and manufacture in... yes... Casablanca, Morocco has been important for several reasons. First, it has created jobs for the region of Casablanca and secondly, it has been an opportunity to showcase Africa's luxury making capabilities.
However, some premium African fashion and accessories brands, due to infrastructural constraints have made the decision to manufacture outside the continent in order to achieve the quality and homogeneity that will attract not only local buyers but the international consumer. So buying African actually could mean 'Buying African... by way of Turkey, China or India'.
Does buying Made in African goods work? Does it meet its objectives?
The Answer: Yes and No...and that response is solely based on the fact that the answer is country specific. There are 54 countries in Africa with a wealth of resources and human capital. These resources have, and continue to play a significant role in decision-making.
The big ticket here is the government.
Fashion entrepreneurs can only do so much alone.
Comparing one country's hashtags to another's government policies and investment shows how critical governments are in the effectiveness of buying 'Made in Africa'.
For example, Morocco. Morocco's textile manufacturing journey has been one of the few visible successes in the region. Their RAWAJ 2020 strategy began in 2008 as a government plan to support local trade and investment, with the end goal being that retail industry contribution to GDP would reach 15% by 2020.
With increasing labour costs from Asia, Morocco saw an opportunity to present itself to the manufacturing world as nearsourcing alternative. The close proximity of Morocco to Europe and the developed world make it very attractive for retailers.
The textile and retail industry has developed significantly in the last 10 years; contributing to 26% (190,000) of the industrial workforce. In addition to this, events such as the Maroc in Mode- Maroc Sourcing and the new port in Tangier will help develop maritime transportation show both intent and clear objectives by the government to further establish Morocco and a manufacturing hub in the retail sector.
Providing adequately developed transportation and communication networks in the form of roads and rail systems to move goods and raw materials, providing steady electricity to aide business competitiveness in order to achieve economies of scale and a competitive advantage whilst also providing an enabling environment for retail, textile and manufacturing industries to do business and export. It is of course a big ask.
Morocco and Tunisia are proof that the 'Made in Africa' initiative (to promote domestic produce, raise the standard of living, diversify the economy and increase GDP) can work but it requires strategic planning and proactive endeavours by the government for sustained impact.
Clear incentivisation for textile and manufacturing businesses to produce coupled with a clear trade policy (which aims to support AfCFTA).